27 May 2024

Co-operative Bank posts 10% rise in full year profit

11:14 am on 27 May 2024
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Co-operative Bank's customer numbers rose 3 percent to just under 182,000. Photo: 123RF

The country's most popular but one of the smallest banks has posted a 10 percent rise in full year profit as it increased customers, lending, and kept bad debts in check.

The Co-operative Bank had a profit of $12.7 million compared with $11.5m the year before as it benefited from rising interest rates and increased mortgage lending.

Chief executive Mark Wilkshire said the result was positive with increased lending and deposits, a stronger balance sheet, and customer growth.

"It was a year of steady growth for the Co-operative Bank, delivering consistent, and sustainable profitability, underpinned by our purpose to grow together and share the gains with our customers."

The bank's income increased close to 8 percent to $100m while expenses rose by about the same level to $78.6m.

Lending and deposits were balanced at about $3b each, with first home buyers taking just under a third of mortgage loans during the year.

The amount set aside for bad and doubtful debts was trimmed slightly to $1.1m.

As a financial co-operative the bank paid a $2.5m rebate to customers, unchanged from the previous year, while customer numbers rose 3 percent to just under 182,000.

Wilkshire said the bank would be investing in its systems and capacity to grow.

"This includes replacing our core banking system - a once in a generation investment - as well as other future-focussed projects looking at customer needs and products."

The Co-operative Bank has been named the best retail bank in eight of the past nine years in Consumer's customer satisfaction survey.

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